People hold a sign at a B.C. courthouse prior to the bail hearing for Meng Wanzhou, Huawei’s chief financial officer on Monday, December 10, 2018. THE CANADIAN PRESS/Jonathan Hayward

People hold a sign at a B.C. courthouse prior to the bail hearing for Meng Wanzhou, Huawei’s chief financial officer on Monday, December 10, 2018. THE CANADIAN PRESS/Jonathan Hayward

Canada-China relations turn icy over arrest of Chinese exec

The Huawei case has threatened to complicate U.S.-China efforts to resolve a bitter trade dispute.

Relations between Canada and China turned frostier Tuesday amid reports that the Chinese detained a former Canadian diplomat and as a Vancouver court resumed a hearing on whether to grant bail to a jailed top Chinese executive.

But U.S.-China tensions seemed to ease somewhat as the world’s two biggest economies confirmed they were working on talks to resolve a trade dispute that has shaken financial markets and threatens to slow global economic growth.

Relations between the three countries were shaken by the Dec. 1 arrest of Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei and daughter of its founder. Canadian authorities detained Meng during a layover at the Vancouver airport at the request of the United States. The U.S. accuses Huawei of violating American economic sanctions against Iran.

The Huawei case has threatened to complicate U.S.-China efforts to resolve a bitter trade dispute.

But the Chinese government said Tuesday that its economy czar has discussed plans with U.S. Treasury Secretary Steven Mnuchin and Trade Rep. Robert Lighthizer for talks aimed at settling the two countries’ differences. Lighthizer’s office confirmed that he had spoken by phone with Chinese Vice Premier Liu He.

The news that trade negotiations may resume lifted stock markets around the world.

Just as the prospects for U.S.-China trade peace brightened, Canada’s relations with Beijing took a darker turn.

Reports surfaced Tuesday that former Canadian diplomat Michael Kovrig, now North East Asia senior adviser for the International Crisis Group, had been detained in China. The Brussels-based nongovernmental organization said in a statement that it is doing everything possible to obtain information about Kovrig’s whereabouts and to secure “his prompt and safe release.”

Kovrig previously worked as a Canadian diplomat in Beijing and Hong Kong and at the United Nations in New York. Canada’s Global Affairs department didn’t immediately respond with comment.

Canada had been bracing for retaliation for Meng’ arrest. The Canadian province of British Columbia cancelled a trade mission to China amid fears China could detain Canadians to put pressure on Ottawa over Meng’s detention.

In Vancouver, meanwhile, Meng was to appear in court for a third day Tuesday as she sought release on bail.

China vowed Tuesday that Beijing would “spare no effort” to protect against “any bullying that infringes the legitimate rights and interests of Chinese citizens,” Foreign Minister Wang Yi said at a conference in Shanghai.

Wang didn’t mention Meng. But ministry spokesman Lu Kang said Wang was referring to cases of all Chinese abroad, including Meng’s.

Washington accuses Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. It says Meng and Huawei misled banks about the company’s business dealings in Iran.

In a popular rallying cry in previous conflicts with the U.S., Japan, South Korea and other governments, Chinese nationalists called on consumers to support Chinese brands. But in an unusual development, an equally large number of internet users criticized such calls as reckless.

Huawei, the biggest global supplier of network gear for phone and internet companies, is the target of U.S. security concerns. Washington has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.

The U.S. and China have tried to keep Meng’s case separate from their wider trade dispute, but jitters among companies and investors have roiled global stock markets.

The United States has slapped tariffs on $250 billion in Chinese imports in response to complaints Beijing steals American technology and forces U.S. companies to turn over trade secrets.

Tariffs on $200 billion of those imports were scheduled to rise from 10 per cent to 25 per cent on Jan. 1. But Trump agreed to postpone those by 90 days while the two sides negotiate.

AP Business Writer Joe McDonald, AP researcher Yu Bing and APTN video producers Fu Ting and Olivia Zhang in Beijing contributed to this report.

Jim Morris, Rob Gillies And Paul Wiseman, The Associated Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kelly Chadwick of Port McNeill tested positive for COVID-19 on Dec. 3. (Submitted)
Port McNeill mother confirms positive COVID-19 test

The mother of two is self-isolating and following all protocols

Speed limit change on Hwy 19 north of Port McNeill. (Zoe Ducklow photo)
New speed limit near Cluxewe Resort on Hwy 19

The Ministry of Transportation and Infrastructure made the change Dec. 1

Felled spruce and cedar trees waiting to be stripped, sorted and hauled down Island. (Zoe Ducklow photo)
Kwakiutl First Nation angry at logging in Douglas Treaty land

The nation is calling on government to honour the Douglas Treaty

The Christmas Tree being put back up in the Thunderbird Mall parking lot. (Thunderbird Mall photo)
Giant Christmas tree returns to Thunderbird Mall Parking lot

At the end of the 2019, extreme winds knocked over the community Christmas tree.

Black Press file photo
Port Hardy RCMP catch shoplifting suspect who allegedly stole over $500 worth of clothing from local store

The suspect was eventually released with multiple conditions and to attend court in February of 2021

Pickleball game in Vancouver on Sunday, November 8, 2020. B.C.’s public health restrictions for COVID-19 have been extended to adult team sports, indoors and outside. THE CANADIAN PRESS/Darryl Dyck
711 more COVID-19 cases detected in B.C. Friday

‘Virus is not letting up and neither can we’

Demonstrators, organized by the Public Fishery Alliance, outside the downtown Vancouver offices of Fisheries and Oceans Canada July 6 demand the marking of all hatchery chinook to allow for a sustainable public fishery while wild stocks recover. (Public Fishery Alliance Facebook photo)
Angry B.C. anglers see petition tabled in House of Commons

Salmon fishers demand better access to the healthy stocks in the public fishery

(Hotel Zed/Flytographer)
B.C. hotel grants couple 18 years of free stays after making baby on Valentines Day

Hotel Zed has announced a Kelowna couple has received free Valentines Day stays for next 18 years

Farmers raise slogans during a protest on a highway at the Delhi-Haryana state border, India, Thursday, Dec. 3, 2020. Prime Minister Justin Trudeau rejected the diplomatic scolding Canada’s envoy to India received on Friday for his recent comments in support of protesting Indian farmers. Tens of thousands of farmers have descended upon the borders of New Delhi to protest new farming laws that they say will open them to corporate exploitation. THE CANADIAN PRESS/AP-Manish Swarup
Trudeau brushes off India’s criticism for standing with farmers in anti-Modi protests

The High Commission of India in Ottawa had no comment when contacted Friday

Nurse Kath Olmstead prepares a shot as the world’s biggest study of a possible COVID-19 vaccine, developed by the National Institutes of Health and Moderna Inc., gets underway Monday, July 27, 2020, in Binghamton, N.Y. U.S. biotech firm Moderna says its vaccine is showing signs of producing lasting immunity to COVID-19, and that it will have as many as many as 125 million doses available by the end of March. THE CANADIAN PRESS/AP-Hans Pennink
Canada orders more COVID vaccines, refines advice on first doses as cases reach 400K

Canada recorded its 300,000th case of COVID-19 on Nov. 16

Apartments are seen lit up in downtown Vancouver as people are encouraged to stay home during the global COVID-19 pandemic on Thursday, Dec. 3, 2020. British Columbia’s deputy provincial health officer says provincewide data show the most important area B.C. must tackle in its response to the COVID-19 pandemic is health inequity. THE CANADIAN PRESS/Marissa Tiel
Age, income among top factors affecting well-being during pandemic, B.C. survey shows

Among respondents earning $20,000 a year or less, more than 41 per cent reported concern about food insecurity

Victoria-based driving instructors are concerned for their own and the community’s safety with the continued number of residents from COVID hotspots in the Lower Mainland coming to the city to take their driving road tests. (Black Press Media file photo)
Students from COVID hotspots travel to Vancouver Island for driving tests

Union leader calls on government to institute stronger travel ban

The opening day on Mount Washington this year was Dec. 4. Screenshot
Mount Washington opens on time, COVID-19 protocols in place

“We’re super excited - it’s been six months in the planning.”

British Columbia Health Minister Adrian Dix wears a face mask to curb the spread of COVID-19, during an announcement about a new regional cancer centre, in Surrey, B.C., on Thursday, August 6, 2020. THE CANADIAN PRESS/Darryl Dyck
PHSA bought faulty respirators; spent money on catering, renovations: Dix

Such spending included ‘unnecessary, unbudgeted renovations’ to the authority’s headquarters in Vancouver

Most Read